Nokia warns on profits due to slowing economy and rising inflation

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Nokia has cut its annual sales forecast and trimmed expectations for profit margins, as the Finnish telecom equipment maker said a tougher economic backdrop had prompted customers to curb spending.

In a statement on Friday, Nokia said sales would be between €23.2bn and €24.6bn this year, down from an earlier forecast of €24.6bn to €26.2bn.

The group also reduced the top end of its range for profit margins to 13 per cent from 14 per cent, while keeping 11.5 per cent as the bottom.

“Customer spending plans are increasingly impacted by high inflation and rising interest rates,” the company said.

It added: “Nokia has been proactively managing costs to protect profitability. As it progresses through this period of uncertainty Nokia will continue to take measures to ensure it remains on track towards its long-term targets of growing faster than the market.”

Shares in Nokia were down just over 5 per cent in early trading.